- Caixin
Activity in China's service sector rose in March, but employment declined for the first time in over 2.5 years, sending mixed signals on the health of a sector which officials are relying on to offset prolonged weakness in manufacturing. The Caixin-Markit China Services PMI rose from 51.2 in February to 52.2 in March. The employment sub-index fell to 48.9 from 51.3, pointing to the first contraction in staffing levels since August 2013. The Caixin manufacturing PMI climbed from 48.0 in February to 13-month high of 49.7 in March, while the official manufacturing PMI, rose to a seven-month high of 50.2, unexpectedly showing an growth.
Caixin's composite manufacturing and services PMI showed a return to growth in March, with the headline figure rising to 51.3 in March from 49.4 in February, helped by an unexpected improvement in the manufacturing sector. China's better-than-expected activity data suggest the economy may have turned a corner, having last year posted the weakest GDP growth rate in 25 years. Nevertheless, the composite employment figure plunged to 47.6, the lowest reading since January 2009 and the 10th consecutive month of contraction. The People's Bank of China has been easing monetary policy for some time now, while Beijing has been boosting infrastructure spending among other fiscal measures, in attempts to cushion growth.
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